When P&L amounts are zeroed out at year end, how do you show unspent fund balances from previous years on the P&L? Or should you do it elsewhere

AI generated answer (using internal Slack threads):

****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ****** In NetSuite, the Profit & Loss (P&L) amounts are typically zeroed out at the end of the year and transferred to the Retained Earnings account. This is a system-calculated account and you should not manually adjust it. If you need to show unspent fund balances from previous years on the P&L, it's not typically done because the P&L is designed to show the income and expenses for a specific period, not the cumulative balance of funds. However, if you need to track unspent funds, you might consider using a Balance Sheet account instead. The Balance Sheet is designed to show the cumulative balance of assets, liabilities, and equity, including Retained Earnings. If you have a specific requirement to track unspent funds in a separate account, you could create a new Equity account for this purpose. At the end of the year, you could make a journal entry to transfer the unspent funds from your income accounts to this new Equity account. Please note that this approach might not be suitable for all businesses and you should consult with your accountant or financial advisor to ensure that it meets your specific needs and complies with all relevant accounting standards and regulations. Also, be aware that if you're dealing with multiple currencies and subsidiaries, you'll need to consider the impact of currency revaluation and intercompany transactions on your balances. In conclusion, while it's technically possible to track unspent funds from previous years on the P&L, it's not typically done and might not be the best approach for your needs. Instead, consider using a Balance Sheet account and consult with your accountant or financial advisor to ensure that you're following the best practices for your specific situation.